481(a) Adjustment Calculator

The KBKG 481(a) Adjustment Software for Cost Segregation, depreciation & repair deduction minimizes the time needed to properly document and calculate IRC §481(a) adjustments required for IRS Form 3115, Change in Accounting Method. These adjustments are typically necessary when a Cost Segregation study is performed on a building acquired or improved in a prior tax year and reclassifies costs to different depreciable lives or to expense categories under the new Tangible Property Regulations.

What is a 481(a) Adjustment?
Under current IRS rules, the calculation of depreciation or repair deductions for prior years can be recomputed, and a one-time catch-up adjustment (i.e. IRC §481(a) adjustment) is allowed in the current tax year for missed deductions. The adjustment is the difference between depreciation or repair deductions claimed versus depreciation or repair deductions that could have been claimed by the end of the prior tax year. This adjustment is reported on IRS Form 3115 and does not require amending any prior year tax returns.


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Features of KBKG’s 481(a) Adjustment Software


Calculates federal regular & AMT values


Segregate original asset/building into unlimited sub-assets


Input multiple original assets/buildings and respective sub-assets


Updated with current tax laws and regulations


Provides calculation schedules sufficient for IRS review


Export results to Excel and/or PDF

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